Great Eastern Inns has a total of 2,800 rooms in its chain of motels located in eastern Canada. On average, 65% of the rooms are occupied each day. The companys operating costs are $15 per occupied room per day at this occupancy level, assuming a 30-day month. This $15 figure contains both variable and fixed cost elements. During February, the occupancy rate dropped to only 40%. A total of $598,500 in operating cost was incurred during February.

Required:

1. Estimate the variable cost per occupied room per day. (Assume 30 days in a month. Do not round intermediate calculations and round your final answer to 2 decimal places.)

2. Estimate the total fixed operating costs per month.

3. Assume that the occupancy rate increases to 55% during March. What total operating costs would you expect the company to incur during March? (Assume 30 days in a month. Do not round intermediate calculations.)